Papua New Guinea–Australia
Development Cooperation Report 2009
December 2010
Contents
Context
2
Progress towards objectives
5
Objective: Key national roads, ports and airports providing access to markets and
services
5
Objective: Significant, measurable progress towards the achievement of universal
basic education
5
Objective: Improved health outcomes
6
Objective: Stabilise spread of new HIV infections by 2020 and provide effective
care and treatment of those infected; and strengthen the national capacity to lead,
coordinate and implement the HIV response
7
Objective: An efficient and effective public service
8
Objective: Development policy and program formulation based on sound statistics
and performance reporting
9
Objective: Improved ability to provide law and justice services
10
Objective: Increased workforce skills
11
Objective: Men and women, civil society and the state working together on issues
of public interest, shaping policy, allocating resources and enabling the exercise of
rights
11
Objective: Sustainable and secure improvements in food supply and incomes for
smallholders
12
Objective: A conducive environment for enhanced private sector development
13
Objective: Addressing the causes and mitigating the impacts of climate change
13
Next steps
13
1
In 2009, the Papua New Guinea (PNG) aid program was in transition between the PNG – Australia
Development Cooperation Strategy 2006-2010 and the PNG – Australia Partnership for
Development. These documents are agreed between the two governments; they outline the scope
of the program and provide a framework against which performance can be measured. The
development cooperation strategy guides the programs in sectors not yet addressed under the
partnership.
This report summarises the bilateral aid program’s progress in 2009 against the
implementation of both agreements. This includes reporting against the objectives assigned to
the five priority outcomes of the Partnership for Development and pre-existing activities under
the Development Cooperation Strategy—totalling the 12 individual objectives included in this
report.
Reports on the program’s performance in previous years are available on the Australian
Agency for International Development’s (AusAID’s) website.
Context
Papua New Guinea is one of the fastest growing economies in the world. Gross Domestic
Product grew by about 5% in 2009 and is expected to grow by a further 8% in 2010
(International Monetary Fund estimate), compared with an annual average growth of 0.4%
between 1995 and 2002 before the recent commodity boom. The 2010 PNG budget forecasts
inflation to be close to 10%, a pressing issue for an economy suffering substantial capacity
constraints. Significant economic inequity in PNG means the longer-term challenge remains to
find a way to translate the benefits of enclave resource projects such as the Liquefied Natural
Gas Project1 into broad-based growth and development.
PNG has the worst social development indicators of the Pacific region and remains
unlikely to meet any of its Millennium Development Goal (MDG) targets by 20152 (the
country’s performance against MDG indicators is in Table 1). However, some progress has
been made in education, infant mortality, HIV prevention, testing and treatment, and in
reducing the incidence of malaria.
There was little change to PNG’s ranking on the Transparency International Corruption
Perceptions Index in 2009—the country ranked 151 of the 180 surveyed (up from
150 in 2008).3
Throughout 2009 there was a decline in government fiscal restraint and transparency.
Although the budget was officially balanced, according to the International Monetary Fund the
real budget deficit was around 8% of GDP due to spending from trust funds. While a
significant increase in the development budget in 2009 appeared positive, according to the
Government of PNG Treasury, the proportion of that budget earmarked for policy priorities
under the national Medium Term Development Strategy fell from 83% to 74%.
1
The PNG Liquefied Natural Gas Project is a joint venture led by Esso Highlands Limited, and includes gas production and
processing facilities in the Southern Highlands and Western provinces. The project‘s first deliveries are scheduled to begin in
2014.
2
Pacific Islands Forum Secretariat, 2010 Pacific Regional MDG Tracking Report
3
The Corruption Perceptions Index ranks countries on the degree to which public officials and politicians are seen to be corrupt.
It ranks 180 countries and draws on 14 polls and surveys from 12 independent institutions. It is published annually by
Transparency International, a non-government organisation (NGO) that monitors corporate and political corruption in international
development.
Papua New Guinea – Australia Development Cooperation Report 2009
2
Based on more than a decade of declining performance, the overriding perception is that the
public sector is weak. The situation is exacerbated by pressure from the Liquefied Natural
Gas Project on the public sector generally, and in particular on the Treasury, the Department
of Justice and Attorney-General (negotiating Benefit Sharing Agreements with landowners)
and the Police.
Overall, the decentralised system of government is complex and fractured, in many cases with
a poor or mixed implementation record. Whilst many provinces in 2009 received increased
funds through function grants as a result of intergovernmental financing reforms, it is not
clear whether this improved service delivery. Further, most provinces still do not receive
enough funding to fulfill their service delivery responsibilities; and those provinces that do are
not making service delivery a high priority.
Law and order was perceived to be in decline and violent crime, including well-planned and
executed robberies of banks and businesses, is increasingly common. Kidnapping for ransom
is an emerging problem and domestic and sexual violence continues to be endemic.
Table 1: PNG performance against selected Millennium Development Goal indicators a
Indicators
1990
2000
37.5
Latest
Goal 1: Eradicate extreme poverty and hunger
1
Poverty headcount ($-a-day purchasing power parity); % of
population)b
24
2
Prevalence of underweight children (under 5 years of age)
29
3
GDP per capita, purchasing power parity ($ current
international)
4
Real GDP per capita growth (% annual)
d
b
1996
1996c
25
1079
1 623
-5.5
-3.8
53.8
2005c
…
1 817
2006
0.4
2006
56
54
2003
64.1
2007c
0.80
2006c
e
Goal 2: Achieve universal primary education
5
Primary completion rate (% of relevant age group)
47
6
Youth literacy rate (% of ages 15–24)
69
76
1991
Goal 3: Promote gender equality and empower women
7
Ratio of girls to boys in primary education
0.86
0.60
8
Ratio of girls to boys in secondary education
0.59
0.79
0.79
2003
9
Women employed in the non-agricultural sector
(% of sector total)f
20
32
35
2004
94
80
74
2006c
733
2007c
1.61
2007e
c
Goal 4: Reduce child mortality
10 Under 5 mortality rate (per 1000)
Goal 5: Improve maternal health
11 Maternal mortality ratio (modelled estimate, per 100 000
live births)
345
c
330
c
Goal 6: Combat HIV/AIDS, malaria and other diseases
12 Prevalence of HIV, total (% of population aged 15–49)g
13 Contraceptive prevalence rate (% of women aged 15–49)
14 Prevalence of tuberculosis (per 100 000 people)
0.05
1993
0.31
26
1996
26
789
2001
30
637
130
2005
2008c
Goal 7: Ensure environmental sustainability
15 Forest area (% of total land area)
70
16 Access to improved water source (% of population)—rural
Access to improved water source (% of population)—urban
17 Access to improved sanitation (% of population)—rural
Papua New Guinea – Australia Development Cooperation Report 2009
67
65
2005
32
c
…
32
2006g
88
c
…
88
2006g
41
c
80
c
…
3
Indicators
Access to improved sanitation (% of population)—urban
1990
67
2000
92
c
Latest
c
…
Sourced from United Nations (UN) Statistics Division, United Nations site for the MDG Indicators, accessed at
<http://unstats.un.org/unsd/mdg/Data.aspx> unless otherwise stated. Usually you have the date of access. Same comment
throughout
Sourced from the World Bank, gross national income (GNI) per capita; purchasing power parity (current international $), accessed
at <http://data.worldbank.org/indicator/NY.GNP.PCAP.PP.CD>.
Pacific Islands Forum Secretariat, 2010 Pacific Regional MDG Tracking Report. more complete references throughout, as per style
material provided for these reports. Example, location and date?
Sourced from the Secretariat of the Pacific Community (SPC).
Estimated figure.
Sourced from the Asian Development Bank (ADB).
Sourced from United Nations General Assembly (UNGASS) PNG 2008 Country Progress Report. (Have italicised what I believe to be
the full title, but AusAID to check)
Australian aid investment to PNG (more than $363 million in 2009) continues to contribute to
development outcomes and poverty reduction.
Table 2: Approximate bilateral expenditure in Papua New Guinea in 2009–10
Sector
$ million
% of bilateral program
Education
44.41
12
HIV/AIDS
32.20
9
Health
36.36
10
Law and justice
35.05
10
Transport infrastructure
54.18
15
Democratic governance
29.06
8
Economic and public sector governance
54.49
15
Tertiary partnership and scholarships
18.40
5
Sub national
27.66
8
Development statistics
3.03
1
Disaster risk management
1.36
0
Rural development
15.53
4
Cross-sectoral
11.78
3
363.51
100
Total
Through the Partnership for Development, Australia is working with the PNG Government to
achieve 12 objectives:
1.
Key National Roads, Ports and Airports providing access to markets and services
2.
Significant, measurable progress towards the achievement of universal basic education by 2015
3.
Improved health outcomes
4.
An efficient and effective public service
5.
Development policy and program formulation based on sound statistics and performance
reporting
6.
Stabilise spread of new HIV infections by 2020 and provide effective care and treatment of
those infected; and strengthened national capacity to lead, coordinate and implement the HIV
response
7.
Improved ability to provide Law & Justice services
8.
Increased workforce skills
9.
Men and women, civil society, and the state working together on issues of common (public)
interest, shaping policy, allocating resources, and enabling the exercise of rights
Papua New Guinea – Australia Development Cooperation Report 2009
4
10. Sustainable and secure improvements in food supply and incomes for smallholders
11. A conducive environment for enhanced private sector development
12. Addressing the causes and mitigating the impacts of climate change
Progress towards objectives
Objective: Key national roads, ports and airports providing access to markets
and services
Australia achieved important results in several key transport areas, and has also helped
improve governance and management within transport sector agencies. However, broad
success in the sector was hampered because the PNG Government did not allocate the
necessary funding to transport priorities agreed to under the Partnership for Development.
Another factor was the constraints in the ability of the public and private sectors to implement
the priorities. In 2009, AusAID funding was used to:
> maintain 1694 km of priority roads through PNG’s Department of Works and 340 km of
the Highlands Highway through two long-term road maintenance contracts (totalling
$28.2 million)
> buy equipment for, and maintain, airports through the Civil Aviation Authority and
Airservices Limited to train air traffic controllers, repair the tarmac of Girua Airport
(servicing Popondetta) and develop a masterplan for Jackson Airport in Port Moresby
($1.45 million)
> refurbish Buka Wharf, on Buka Island, Bougainville ($1.4 million) and maintain around
416 km of the Bougainville trunk road ($4.68 million).
The condition of national roads in 2009 was 39% good, 40% fair and 21% poor, an
improvement over the 2006 figures of 32.7% good, 29.9% fair and 36.6% poor.
Program support has also improved the transport sector’s ability to meet the international
transport security standards set by the International Civil Aviation Organisation and
International Maritime Organisation. All maritime ports were security audited in 2009 and
12 of the nation’s 22 airports now meet airport safety certification requirements.
In 2009, only 58% of allocated program funding was spent on maintaining assets. Limiting
factors were delays in finalising the Department of Works annual work plan; the late release of
warrants, the authorisation for making allocated funds available for expenditure by the
Department of National Planning and Monitoring; delays in preparing and processing tender
documentation by the Department of Works and Project Management Committee; the ongoing
poor performance of construction contractors; and the large overrun on contract periods.
Objective: Significant, measurable progress towards the achievement of
universal basic education
While PNG will not achieve its education-related MDG targets by 2015, with Australian
support it has made strong progress over the past three years towards universal basic
education. For example, the net admission rate4 increased every year since 2006, both for boys
4
The total number of entrants six years of age in the preparatory grade, expressed as a percentage of the population aged 6 years
of age.
Papua New Guinea – Australia Development Cooperation Report 2009
5
and girls, from 11.5% in 2007 to 23.9% in 2009. Similarly, the net enrolment rate increased
steadily from 52.9% in 2007 to 63.6% in 2009. The increase in enrolment meant that, in 2009,
there were 1 272 559 students in elementary and primary schools compared to 973 822 in
2006, an average increase of 9.2% for each of the three years. Retention also steadily
increased. While 41.5% of enrolled students completed grade 8 in 2006, 56.9% completed it
in 2009.
Specific program achievements include:
> building 176 double classrooms, 47 teacher houses and 13 other buildings
(such as libraries, administration and toilets) in 229 schools
> providing maintenance grants to 189 schools for small rehabilitation works
> procuring and distributing 539 000 textbooks for basic education; producing, printing and
distributing 5000 sets of school management booklets and the National Infrastructure
Guidelines for school management; and printing and distributing 180 000 HIV/AIDS
booklets for schools and provinces
> building facilities to expand the PNG Education Institute in Port Moresby
> introducing a new residential course for 300 elementary school teachers; and providing inservice teacher training to 33 000 teachers, including producing training manuals.
Objective: Improved health outcomes
Overall, the health sector remains bleak. The PNG Government is not adequately funding the
sector or implementing key accountability measures to improve how health funds are used.
While there have been improvements in some areas, access to health services remains
extremely limited and health outcomes for women continue to be a serious concern.
Infant and child mortality has improved in recent years. However, one in every 13 children
born in PNG will die before the age of five. Progress was steady towards the national infant
mortality target of 44 per 1000 live births, and PNG is likely to achieve its national under-five
mortality target of 72 per 1000 live births. Nonetheless, progress against global MDGs is off
track.
In PNG, only 40% of deliveries are supervised by a skilled worker. Low level of contraceptive
use, high levels of fertility, low education levels of women and the low status of women are
important factors contributing to the high level of maternal morbidity and mortality in PNG.
Progress has been made in preventing and controlling malaria, evidenced by the decline in
incidence from 278 per 1000 people in 2004 to 236 per 1000 people in 2008.5 Tuberculosis
remains one of the top 10 causes of hospital admissions and is the third highest cause of
morbidity and mortality in PNG. The prevalence of tuberculosis is estimated at 513 cases per
100 000 people6 and treatment success rate is 75%.7
PNG’s sector-wide approach in health, which Australia supports, has not achieved tangible
improvements. It has failed to deal with the resource challenges of the decentralised system of
government. A restructure to improve the approach is underway.
5
6
7
Health Sector Review (2001–09), National Department of Health, May 2009.
United Nations Economic and Social Commission for Asia and the Pacific, Statistical Yearbook for Asia and the Pacific 2008.
PNG–607–G03–T Grant Performance Report TB Round 6 (updated 6 January 2010).
Papua New Guinea – Australia Development Cooperation Report 2009
6
The Capacity Building Service Centre is an important element of Australian assistance to the
health sector, targeting human resources development and institutional strengthening. Its
achievements include:
> Helping the National Department of Health develop its recurrent operating budget for
2010. The budget was widely acclaimed as one of the best submitted in recent years and its
quality contributed to the department receiving an increase of $20 million in funding over
the 2008 budget. Within this increase, an extra $5.2 million was allocated for
medical supplies.
> Assisting PNG to secure US$120 million for malaria control for 2009–2013 through
Round 8 of the Global Fund to fight AIDS, Tuberculosis and Malaria and a Phase
II extension for the Round 6 tuberculosis grant, valued at $US15.8 million.
> Maintaining and supporting the largest non-military high frequency radio network in the
southern hemisphere, consisting of high frequency radios installed in all health centres
(more than 1300) and some aid posts in every province. The health radio network is widely
recognised for saving lives daily.
Through a separate part of the aid program, support to the Consultative Implementation and
Monitoring Council, a mechanism for engaging civil society in the development of government
policy, led to the Department of Health removing fees for treating domestic violence, sexual
abuse and child abuse cases at hospitals and health centres.
Objective: Stabilise spread of new HIV infections by 2020 and provide
effective care and treatment of those infected; and strengthen the national
capacity to lead, coordinate and implement the HIV response
The HIV epidemic is a continuing development challenge for PNG. Evidence suggests the
epidemic is concentrated in urban and peri-urban settings and in the economic and social
corridors, specifically the provinces along the Highlands Highway. Based on 2009 data and
analysis, PNG’s HIV prevalence is 0.9% of the population (15 to 49 year olds), lower than the
2007 projection.
The Liquefied Natural Gas Project will bring opportunity as well as social and economic risk.
For the HIV epidemic the project has the potential to join critical risk factors in HIV
transmission including: mobility of people from within and outside the region for work;
sudden wealth within communities that could contribute to increased alcohol and drug use;
and increased transactional sex and multiple partnering.
Despite operating in a challenging institutional environment, Australian support has rapidly
improved access to HIV services in PNG which, in turn, has contributed to managing the
spread of the disease. The Independent Review Group 2010 assessment of the epidemic in
PNG again confirmed that, while progress is insufficient, real achievements are being made,
particularly in treatment, care and prevention initiatives. There is evidence of increased access
to voluntary counselling, testing services, treatment and condoms across the country. Specific
achievements in 2009 include:
Papua New Guinea – Australia Development Cooperation Report 2009
7
> 74% of those eligible for treatment8 were able to access it compared to 0% in 2003—this is
notable progress in PNG’s effort to achieve universal access to treatment and PNG is the
only country in the region to have achieved such a major milestone
> nationally, 251 sites are providing HIV testing and counselling services, an increase from
61 sites in 2006
> more than 123 000 people received voluntary counselling and HIV testing, compared to
32 645 in 2006
> more than 108 million condoms were procured and are now being distributed, compared to
less than 5 million in 2008
> people living with HIV have established seven networks throughout PNG with an estimated
1500 plus members—in 2006 there were only three networks.
A key target in the new draft National HIV and HIV Strategy 2011–2015, the successor to the
National Strategic Plan on HIV/AIDS 2006–2010, is to stabilise HIV prevalence in adults at
0.9% by 2015.
Objective: An efficient and effective public service
Overall, the ability of the public service to deliver services is not increasing. Improvements in
performance of one part of the service do not always flow through to other parts—they can be
undermined by political interference or weakness in other areas of the service. At the political
level there is not enough commitment to improve. The Liquefied Natural Gas Project is
drawing resources and attention away from the public service. Australian assistance is
preventing faster decline in PNG governance, but in the current environment the
improvement needed to make the public service efficient and effective in delivering services is
highly unlikely to be realised.
In 2009, the Australian aid program supported:
> The Auditor General’s Office to improve links between national agencies and provincial
chief financial officers, and decrease by between 33% and 50% the time taken to perform a
quality audit on provincial government and provincial hospital financial statements
> Treasury to strengthen performance through recruitment and—in conjunction with the
Department of Provincial and Local Government Affairs and the National Economic and
Fiscal Commission—run four regional workshops on responsibilities and requirements for
the budget process
> Finance department to improve its productivity as well as its budget and internal auditing
processes.
The Provincial Capacity Building Program trained provincial government officers in using
information and communication technology, preparing financial statements, reconciling
bank accounts and establishing fixed asset registers across six provinces. The program has
improved the knowledge and skills of financial management staff and the quality of provincial
treasury reporting.
8
Based on the World Health Organization eligibility criteria of those who need treatment and who have a CD4 count of less
than 200.
Papua New Guinea – Australia Development Cooperation Report 2009
8
Support to Treasury resulted in a strong budget process, improved outreach across national
agencies and advice that helped influence ministers towards a balanced 2010 national budget.
This effort was undermined by the drawing down of expenditure from trust funds, resulting in
a real budget deficit of around 8% of GDP.
A new intergovernmental financing regime, developed through seven years of AusAID
assistance to the National and Economic Fiscal Commission, started in 2009. This helped to
increase service delivery funding to provinces by 25% compared with 2008.
PNG’s Department of Finance improved budget processes, worked better with the provinces
and reinvigorated the Internal Audit Committee. In 2009, 70% of the Department of Finance
audit plan was completed, a strong improvement over earlier years. Two new internal audit
committees began operation in 2009, bringing the total number to 19, and the number of audit
committee meetings increased.
The Auditor General’s Office cleared the audit backlogs from 2007 and 2008 and completed
the 2009 audits on time. It sharpened its focus on provincial governments, to help improve
accountability for service delivery at the sub-national level.
The Provincial Capacity Building Program continued improving financial management at the
sub-national level in provincial and district treasuries in six provinces. A backlog of work from
4 to 5 years ago was cleared for most supported provinces. The average time taken to lodge
financial reconciliations for supported provinces was 2.6 months, compared to an average of
7.4 months9 for other provinces.
Objective: Development policy and program formulation based on sound
statistics and performance reporting
Australia provided technical assistance and funding to the PNG Government to design a
National Statistical Development Strategy, to guide the delivery of the 2008–09 Household
Income and Expenditure Survey and to improve the collection, analysis and use of
development data in formulating policy. Support to the planned 2010 National Population
Census was limited because the census was deferred until 2011.
The Household Income and Expenditure Survey completed its sixth month of data collection
by March 2010. The National Statistics Office is working to release some preliminary tables.
Timely availability of operational funds is the project’s biggest challenge, costing the project
three to four months of data collection time. Treasury, the National Statistics Office, finance
managers, donors and the Central Supply and Tenders Board are working together to
streamline processes and release the funds more quickly.
The Household Income and Expenditure Survey has included a focus on gender equality at all
stages, but most significantly in designing the survey to include collection of data on violence
against women and children in the home and designing for greater sex disaggregation of data.
Another benefit of the Household Income and Expenditure Survey has been to improve the
skills of National Statistics Office staff to collect and manage electronic data.
The 2006 Demographic and Health Survey was completed in May 2009. While conducted
outside the timeframe of the partnership program, it sets the baseline for the next
Demographic and Health Survey, due in 2011. It will be a key achievement if the survey
9
Provincial Capacity Building Program Phase II 2008 Assessment Report.
Papua New Guinea – Australia Development Cooperation Report 2009
9
continues to be conducted and reported every five years. So far, planning and budgeting have
not begun for a 2011 start date.
Objective: Improved ability to provide law and justice services
The decline in overall law and order remains a serious concern. Fear of crime continues to be
high and perceptions of corruption and the ability of the police to deal with these issues
remains negative according to crime surveys10 conducted during 2009 in Bougainville (Buka
and Arawa), Mt Hagen and Port Moresby (National Capital District). The lack of reliable
statistics makes it difficult to judge criminal justice trends in PNG, but violent crime—
including well-planned and executed robberies of banks and businesses—is increasing.
Kidnapping for ransom is emerging as a problem and domestic and sexual violence continue to
be endemic.
As acknowledged by the PNG Government, the Royal PNG Constabulary and
Correctional Services are in crisis, with ageing workforces and an inability to deliver services.
Correctional Services performance was particularly poor in 2009, with prison breakouts
continuing to rise and escapee numbers estimated to be as high as 460 in 2009, representing
almost a 100% increase on 2008.
Australian assistance is helping to improve law and order in some areas. Australia is advising
on the restoration of the rule of law in Bougainville, on the establishment of law and justice
agencies and on building the capacity of the Bougainville Law and Justice Division. Australian
support for the Buka Prison is resulting in more secure and humane conditions for prisoners.
Australia assists Community Justice Centres on Bougainville, managed by the community for
the community. These centres support coordinated judicial circuits and service desks for
women, youth, village courts, Community Auxiliary Police, the Council of Elders, counselling
services and HIV/AIDS support.
Australian support for the high-profile Yumi Lukautim Mosbi (Let’s look after Moresby)
program is helping youth find jobs. It is also bringing law and justice agencies, such as the
police, together with local government, businesses and communities to address law and order
concerns. Since 2004, a total of 3600 young people from settlements in Port Moresby have
volunteered to work with police in the community as part of Yumi Lukautim Mosbi.
For many PNG citizens the country’s 1400 village courts provide the entry level for justice
services, and for many this is the only avenue to access justice services. The PNG Australia Law
and Justice Program supports the Village Court Secretariat and the rejuvenation of the village
court system.11 This includes improving information management systems, training village
court officials and incorporating issues such as gender equality and HIV/AIDS into all village
court work. All provinces are recruiting women to village courts.
Family and sexual violence units established during 2009 in Boroko, Waigani and Badili
police stations are helping victims of these crimes. The units offer referrals for victims
needing interim protection orders, medical services, counselling services and emergency
accommodation. In 2009, the three units helped 746 people. This included referring 204
people to welfare, medical and/or legal services and issuing 41 interim protection orders.
10
Crime surveys are conducted on a regular basis (in 2009 by the Law and Justice Sector Secretariat) across different geographic
locations including Port Moresby, Lae, Bougainville, Mt Hagan and Kianantu.
11 The White Paper on Law and Justice in PNG highlights the importance of a revitalised village court system and the need for
significant improvements within the operation of these courts.
Papua New Guinea – Australia Development Cooperation Report 2009
10
These orders, introduced in 2009, provide immediate protection from physical or sexual
violence and threats or actual damage to property. Guidelines directing proceedings of District
Court Magistrates have resulted in the granting of 342 orders. Before the orders were
introduced, victims of family or sexual violence or other gender-based crime had no effective
legal support.
Australian advisory support makes a significant contribution to the management and
administration of the Law and Justice Division of the Eastern Highlands Provincial
Governments and the development of District Peace Management Teams in all districts in
Eastern Highlands Province. Fifty-two of 78 tribal fights in Eastern Highlands Province are
now dormant or have normalised as a result of a more formal and coordinated approach to
mediation and resolution as well as other improvements in law and order.
Objective: Increased workforce skills
The Australia Pacific Technical College and AusAID scholarships contribute critically required
human resource development in PNG, providing high quality graduates with Australian
awards at all levels of post-secondary study (vocational, undergraduate, postgraduate and
doctoral).
The Australia Pacific Technical College trains Papua New Guineans in technology trades
(automotive, manufacturing, construction and electrical) and in hospitality and tourism.
Students graduate with skills of Australian standard and this is supporting broad-based
economic growth and increased productivity in PNG.
Australia Pacific Technical College achievements in 2009 include:
> 239 graduates
> 123 students on scholarships
> 399 students enrolled.12
Under the PNG scholarship program in 2009, 27 technical and vocational scholarship
awardees successfully completed their studies and returned to PNG.
Objective: Men and women, civil society and the state working together on
issues of public interest, shaping policy, allocating resources and enabling
the exercise of rights
Australian assistance to the PNG Electoral Commission is supporting organisational reform,
resulting in direct engagement between the commission and civil society. These partners are
working to improve the electoral process and to develop a three-year awareness-raising
communications strategy. This work is critical in the lead up to the 2012 national election.
Support to the PNG National Broadcasting Commission led to the establishment of the
National Broadcasting Commission Board and systems to hold Commission management to
account; National Broadcasting Commission News making more effective use of provincial
journalists, with higher expectations of filing rates and more structured feedback; and the
Commission responding strongly to the cholera epidemic with news reports, information
programming and ‘spot dramas’ on key themes.
12 Total enrolments include scholarships, self sponsored and industry sponsored. Data taken from the Australia Pacific Technical
College in PNG update report of February 2010.
Papua New Guinea – Australia Development Cooperation Report 2009
11
Support to PNG’s Media Council is helping to address problems of media access, content and
voice. In 2009, the council held conferences on subjects such as media freedom and climate
change. These attracted large audiences, resulted in significant debate and media coverage and
helped improve the ability of journalists to report on issues of importance to PNG’s
development.
In 2009, the Church Partnership Program supported churches to respond to local
development needs and community initiatives. In PNG, churches are major health and
education service providers. The quality and reach of their services to communities equals, and
often exceeds, that of government. During 2009, Australia helped partnership churches to
improve their management and capacity for service delivery. Australia also helped facilitate
partnerships between and within participating churches, enhancing their collaboration. The
churches’ understanding of development has increased as a result. This knowledge has helped
churches—individually and jointly—deliver better community-level services in health,
HIV/AIDS and education.
Community participation in quality, regular, sport-based activities has increased under the
Sport for Development Initiative. Grants have been used to achieve good outcomes at
community level, including reducing drug and alcohol abuse, increasing opportunities for
women to make money, improving sporting and organisational skills, improving the status of
women through active participation in sport, and enhancing communication and volunteer
activity at local levels.
A pilot project on participatory planning for the Bogia Ward helped develop plans for local
development activities based on genuine community need. On the strength of these new plans,
the district and local level governments applied for, and received, donor and PNG government
funding for implementation.
Objective: Sustainable and secure improvements in food supply and incomes
for smallholders
In 2009, through the Agriculture Research Development Support Facility, Australia funded
the National Agriculture Research Institute and five other national agriculture research
organisations. This helped reorient research agendas from a purely technology focus to one
that included institutional arrangements and policy innovations, helping drive broad-based
agricultural development in PNG. The facility has also supported the institute to pioneer
geographic information based planning which better matches resource allocation to clients’
priority needs. The Agricultural Innovations Grant Scheme has supported new approaches to
assisting farmers, such as mobile phone-based market information. The National Agriculture
Research Institute is also piloting a project in partnership with PNG Women in Agriculture
and PNG Microfinance to address women’s access to funding for agricultural activities.
An independent evaluation of the PNG – Australia Quarantine Twinning Scheme in early 2010
found that National Agriculture Quarantine Inspection Authority’s (NAQIA) partnership with
the scheme strengthened its technical capabilities, but failed to deliver organisational
development. Program success centred on developing NAQIA’s ability to carry out technical,
service delivery and logistical tasks, in the areas of disease and pest control, including for
export products.
In 2009, the Australian Centre for International Agricultural Research (ACIAR) portfolio in
PNG focused on agricultural systems, including post-harvest activities; the production and
protection of root, horticultural and tree crops; and fisheries and forestry. ACIAR helped the
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agricultural sector become stronger by supporting postgraduate degrees in Australia and an
in-country scholarship scheme at the University of Technology, Lae, as well as providing
targeted activities within projects.
Objective: A conducive environment for enhanced private sector
development
In 2009, AusAID worked with key stakeholders to increase Papua New Guineans’ access to
financial services, including microfinance. In collaboration with the Asian Development Bank
(ADB), International Finance Corporation and Institute of National Affairs, AusAID supported
two workshops on the PNG microfinance industry and mobile banking. AusAID also worked
with the ADB to support establishment of the Nationwide Microbank which now has nine
branches and a training centre to support other microfinance institutions.
Australia helped PNG’s Treasury reduce impediments to, and thereby increase, private sector
investment. Areas of assistance included: negotiation of tax arrangements for the Liquefied
Natural Gas Project; input into the development of a public – private partnership policy being
promoted by the ADB through the National Public-Private Partnership Taskforce; and
promotion of competition benefits (through the elimination of state owned enterprise
monopolies, especially in the telecommunications and aviation sectors).
The Advisory Support Facility supported employment regulation in PNG, which is helping
businesses by improving the foreign work permits system.
AusAID is making a modest contribution to land reform policy development. Australia’s
support is progressing slowly because PNG’s decision making on land reform issues stalled
from 2007 until mid 2009 due to political factors. During 2009, the PNG Government
continued to address land administration issues, established a dispute settlement system and
improved customary land administration through its National Land Development Program.
This is increasing land use for economic activities.
Objective: Addressing the causes and mitigating the impacts of
climate change
In 2009, Australia’s contribution focused on advisory support, both technical and
institutional, as agreed to by the Office of Climate Change and Environmental Sustainability.
The most notable achievement of the PNG Government in 2009 was the hosting in May of four
regional conferences, in Goroka, Madang, Alotau and Rabaul. The conferences were an initial
step to inform and educate provincial governments, landowners and stakeholders on climate
change and the PNG Government’s role in climate change mitigation and management.
There is a risk of donors overloading the Government of PNG with funding in the field of
climate change—there is a substantial pool of funding available but PNG has very little
institutional ability to process it.
Next steps
A key focus for the program in 2010 will be responding to the recommendations of the
Development Cooperation Treaty Review (the Review) which noted real achievements of the
aid program in PNG, but also raised important challenges. Significant changes are needed to
improve the effectiveness of the aid program and achieve better value for money through the
Partnership for Development. The review identified that the program is too thinly spread, and
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called for substantial change in the Australian aid program, particularly relating to focus and
impact. An emerging challenge will be to understand and position the program in relation to
impacts of the Liquefied Natural Gas Project. Strengthening the quality of dialogue with the
Government of PNG is vital.
In 2010, work is needed at the strategic level to determine how AusAID will proceed on the
Review recommendations. This response will be determined through close dialogue with the
GoPNG. Issues for consideration include narrowing the focus of the program, more targeted
use of advisers and the role of non-state actors, such as churches and non-government
organisations, in delivering services.
In May 2010 the Australian Foreign Minister announced a review of advisers working in the
PNG Program. The review of technical advisers will allow AusAID and the Government of PNG
to examine the role they play in the aid program and focus on the contribution they make to
development results. The objective is to ensure that technical advisers represent an effective,
value-for-money response to meeting our partner government needs and priorities.
In addition to the Development Cooperation Treaty Review, other matters for consideration
include the findings of the PNG University System Review, the development of new
Partnership for Development schedules, and determining what sectors and types of aid will
position the PNG aid program best for scaling up and achieving impact.
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